Launching a Secondary Bought Deal (Press Releases & Announcements)

This legal template outlines the process and requirements for launching a secondary bought deal under USA law, specifically with regards to press releases and announcements.

A bought deal refers to a type of securities offering where an underwriter or a syndicate agrees to purchase shares or other securities from a company before the offering is publicly announced. In this case, the template is tailored to the secondary bought deal, which usually involves the sale of existing securities by major shareholders or institutional investors rather than the issuance of new shares by the company.

The template would provide guidance on the legal and regulatory considerations to be taken into account when initiating a secondary bought deal. It may cover the necessary steps and procedures involved in drafting and disseminating press releases and announcements related to this transaction, ensuring compliance with relevant USA securities laws and regulations.

The template might include standard clauses and provisions that need to be included in the press releases, such as the identification of the parties involved (company, underwriters, selling shareholders), a description of the securities being sold, disclosure requirements, any material events or developments that necessitated the sale, and information regarding pricing and the underwriting agreement.

Additionally, the template could address important considerations regarding the timing and sequence of announcements, as well as the rules and restrictions pertaining to the communication of material non-public information (MNPI) during the bought deal process. This would help ensure that all disclosures are made in accordance with applicable laws and regulations, thereby protecting the interests of both the company and investors.

Overall, this legal template aims to provide a comprehensive framework for companies and legal professionals involved in a secondary bought deal, specifically focusing on the necessary press releases and announcements needed to comply with USA securities laws.